Cora Gold (CORA.L) has released positive initial results of its initial bulk sample programme on its Sanankoro gold project. The purpose of the programme was to explore the option to use an existing third party processing plant to process the mineralized rock, rather than taking care of the processing steps themselves. An initial gravity concentration test has yielded some initially positive results as 57% of the gold was recovered in a concentrate that represents just 1% of the mass of the bulk sample. That concentrate had an average grade of 70 g/t gold, and a 30 tonne truck could thus ship about US$125,000 worth of gold from the Sanankoro project to a third party processing plant. Cora has been working with Hummingbird Resources (HUM.L) to see if the latter’s Yanfolila gold mine in Mali could further process the high-grade gold concentrate.
The remainder of the gold-bearing rock (which was rejected by the gravity concentration) has been tested using the bottle roll test and the gold recovery rate came in at approximately 75% within 96 hours. Meanwhile, the company continues to discover more areas with distinct gold mineralization just a few kilometers away from the main resource area at Sanankoro and this should result in a higher overall resource and probably boost the NPV of the project as well. There is currently some political unrest in Mali, but we expect the situation to calm down sooner rather than later.
Disclosure: The author has no position in Cora Gold.